Russian Roublette: clubs face FFP meltdown

rubles

By Paul Nicholson
February 10 – Russian clubs hoping to get a break in the financial fair play rules because the ruble has effectively halved in value over the past five months have been told by UEFA there will be no concessions in the regulations.

For Russian clubs spending in the international markets the drop in the value of the rouble makes non-Russian players expensive to bring in, especially if they negotiate and have their salaries paid in euros. As the rouble has dropped in value so the cost of players on long term contracts has risen.

Conversely, payments to clubs from competing in European competition have the effect of being considerably more valuable than previously in the local currency.

Russian clubs have already fallen foul of UEFA’s financial fair play rules. Last May Russia’s Zenit St Petersburg were fined €12 million, Rubin Kazan were fined €6 million and the free-spending but relegated Anzhi Makhachkala €2 million.

Andrea Traverso, head of UEFA’s club licensing and financial fair play unit, said that there was no provision in UEFA’s regulations for extraordinary economic conditions and how they could impact on financial fair play. However, he offered some hope saying the clubs are a victim of the Russian currency situation, not the cause, and hence UEFA would look at each of the Russian clubs as separate cases.

Under UEFA FFP rules clubs competing in its competitions must prove they have no overdue liabilities to other clubs, their players or their tax authorities. Clubs must also prove that it are not spending more than their income, hence the sensitivity of the currency situation.

Russia’s ruble plummeted to a record low of 75 rubles to the US dollar in mid-December, compared to an average of 38 rubles in September, but rebounded to 53.23 by late December. It currently stands at 66 rubles to the dollar compare to the 33 rubles to the dollar at the start of 2014.

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